Global Fats and Oils Market Expected to Reach USD 336.3 Billion by 2033 - IMARC Group

Global Fats and Oils Market Statistics, Outlook and Regional Analysis 2025-2033

The global fats and oils market size was valued at USD 241.1 Billion in 2024, and it is expected to reach USD 336.3 Billion by 2033, exhibiting a growth rate (CAGR) of 3.38% from 2025 to 2033.

The rising population across the globe, creating the need for increased food production, is one of the major factors bolstering the market growth. As per industry reports, it has been found that feeding a world population of 9.1 billion people in 2050 would require raising overall food production by some 70 percent between 2005/07 and 2050. In line with this, fats and oils are essential components of daily diets and play a critical role in various culinary applications, such as cooking and baking. They are also important for their role as flavor enhancers and as carriers for fat-soluble vitamins. Along with this, the increasing awareness of healthy eating, leading to a notable rise in the consumption of plant-based oils, such as olive oil, sunflower oil, and canola oil, which are known for their health benefits, is fueling the market growth. For instance, the market for olive oil is expected to reach USD 21.2 billion by 2033 from USD 15.1 billion in 2024. Its market is also growing at a rapid pace of 3.82% annually. This trend aligns with the growing interest in heart-healthy diets and the reduction of trans fats.

The rising economic development in emerging markets is also boosting the demand for fats and oils. Along with this, the growing disposable income levels in countries across Asia-Pacific, Latin America, and parts of Africa that lead to an increased demand for diverse food products are fostering the market growth. For example, the per capita disposable income of Indian citizens grew 8% in FY24 and 13.3% in the previous year. This change increases the consumption of processed and convenience foods, which contain a variety of oils for cooking and preservation purposes. In addition to this, the burgeoning expansion of the food industry, including the fast-food sector and packaged food products, is fueling the market growth. As per the report by IMARC Group, the market for packaged goods is growing rapidly and is estimated to reach USD 4,709.0 billion by 2033. Fats and oils are key ingredients in food manufacturing due to their properties that influence texture, flavor, and moisture retention. Moreover, the increasing consumption of snacks, bakery products, and ready-to-eat (RTE) meals that utilize diverse types of oils, including palm oil, soybean oil, and coconut oil, is favoring the expansion of the market.

Global Fats and Oils Market Statistics, By Region

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia-Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share on account of its large population, growing packaged food sector, and rapid technological advancements.

Asia-Pacific Fats and Oils Market Trends:

Asia Pacific represented the largest share of the fats and oils market, driven by its high population density, rapid urbanization, and evolving dietary patterns. Moreover, the increasing consumption of cooking oils like palm, soybean, and coconut oil in the region is fueling the market growth. As per a report by Niti Aayog, India, it has been highlighted that over the past decades, per capita consumption of edible oil in the country has seen an impeding rise, reaching 19.7 kg/year. Moreover, the region's expanding food processing industry and growing disposable income are boosting the market growth.

North America Fats and Oils Market Trends:

North America exhibits steady growth in the fats and oils market, driven by diverse applications across food processing, fast food, and industrial sectors. Moreover, the increasing demand for healthier oils, such as canola and avocado oil, owing to the strong focus on health-conscious eating among individuals, is favoring the market growth.

Europe Fats and Oils Market Trends:

Europe's fats and oils market is supported by a strong demand for premium and specialty oils, reflecting the region's focus on health and sustainability. Additionally, the well-developed infrastructure in the region for the production and consumption of sunflower, rapeseed, and other vegetable oils is favoring the market growth.

Latin America Fats and Oils Market Trends:

Latin America's market for fats and oils is influenced by traditional consumption and the growing trend for healthier alternatives. Along with this, the ongoing shift in consumer preference toward products with lower saturated fat content, driving the development and availability of alternative oil sources, is catalyzing the market growth.

Middle East and Africa Fats and Oils Market Trends:

The Middle East and Africa segment's market for fats and oils is experiencing growth, supported by the increasing adoption of various types of cooking oils and fats. Additionally, the rising urban population and improvements in income levels that increase the demand for processed foods are creating a positive outlook for the market.

Top Companies Leading in the Fats and Oils Industry

Some of the leading fats and oils market companies Ajinomoto Co. Inc., Archer-Daniels-Midland Company, Associated British Foods plc, Bunge Limited, Cargill Incorporated, Conagra Brands Inc., Fuji Oil Holding Inc., Unilever, United Plantations Berhad, Wilmar International Limited., among many others.

 In January 2024, Fuji Oil Asia, a subsidiary of Japan's Fuji Oil Group, signed an agreement with palm oil producer Johor Plantations Group (JPG) to build a specialty oils and fats refinery in Malaysia. This facility will operate on renewable energy.

Global Fats and Oils Market Segmentation Coverage

• On the basis of the type, the market has been categorized into oil type (palm, soybean, rapeseed, sunflower, olive, and other oils) and fat type (butter, shortenings and margarine, lard, tallow, and others), wherein oil type represents the leading segment, due to its widespread use in cooking, food processing, and industrial applications. Moreover, the versatility and availability of various oils like palm, soybean, and olive oil is contributing to its dominant position.
• Based on the application, the market is bifurcated into food applications and industrial applications, amongst which food applications dominates the market, as fats and oils are essential ingredients in cooking, baking, and processed foods. Furthermore, the global demand for ready-to-eat (RTE) and convenience foods is fueling the need for fats and oils in the food industry.
• On the basis of the source, the market has been divided into vegetable and animal. Among these, vegetable accounts for the majority of the market share, due to their health benefits, affordability, and extensive use in households and the food industry.
• Based on the sales channel, the market is segregated into direct sales, supermarkets and hypermarkets, retail stores, online stores, and others. Direct sales cater to bulk purchases and partnerships with food manufacturers, ensuring large-scale distribution and steady demand. Supermarkets and hypermarkets offer accessibility and variety, catering to everyday consumer needs for fats and oils. Retail stores also play a crucial role in local distribution, offering convenience to consumers in residential and rural areas. Online stores boosts sales through convenience and offer a wide selection of products that are available for delivery.